The long-running Market Basket power struggle took a sharp turn on Monday, when a Delaware judge rejected Arthur T. Demoulas’s bid to claw back his old job as CEO of the New England grocery chain. In a ruling from the Delaware Court of Chancery, the judge found that the board’s decision to first suspend and then fire the longtime leader was valid, shutting down Demoulas’s push to be restored after his summer suspension and removal. For now, at least, one chapter of the family’s high-stakes corporate feud is legally closed.
According to WHDH, Vice Chancellor J. Travis Laster ruled that the Market Basket board acted in good faith and denied Demoulas’s request to return to the president’s post. The station noted it had reached out to Market Basket for comment. The ruling was issued April 20, 2026.
Judge’s reasoning
As reported by The Boston Globe, Laster described Demoulas as “an excellent operator, but an imperious leader,” and concluded that directors “rationally concluded” his conduct posed a threat to the company. The Globe’s coverage ties the decision to governance demands the board delivered in August 2024 and to directors’ concerns about a potential repeat of the bruising 2014 employee walkout that rocked the chain.
Family feud and a 2014 flashback
The latest ruling is rooted in a dispute that has been simmering for months, on top of years of family infighting over the privately held company. WCVB reported that Demoulas was first placed on leave in May 2025 amid allegations he was preparing a work stoppage. The board then voted to remove him in September 2025 and tapped longtime chief financial officer Donald Mulligan as interim CEO.
Supporters of Demoulas have blasted those moves as a power grab by his three sisters, who collectively hold a majority stake in the company and have been central figures in the ongoing family fight over control.
Business and legal stakes
Legal and industry observers say the decision underscores just how much leverage majority shareholders hold in closely held companies, and it could significantly shape Market Basket’s future direction. Bloomberg Law and local coverage note that Demoulas’s three sisters control roughly 60 percent of the holding company, compared with Demoulas’s roughly 28 percent stake, an ownership split that framed the clash over corporate oversight and strategy.
What comes next
Demoulas still has a possible next move. He may seek review in the Delaware Supreme Court, where state rules generally require a notice of appeal to be filed within 30 days of a Chancery Court order, according to guidance from the Delaware courts.
Closer to home, elected officials and shoppers have been anything but quiet about the turmoil. As Methuen’s mayor urged Market Basket to restore Demoulas last year, the company’s loyal customer base and local politicians have treated the executive drama almost like a civic issue. The new ruling is likely to keep questions about Market Basket’s leadership and long-term direction in the headlines. WHDH reported that Market Basket had been contacted for comment and had not immediately issued one.
